.../approach This study, therefore, examines the role of economic institutions in the real exchange rate economic growth nexus by using auto regressive distributed lags model and vector error correction model for causality during the period 1971 to 2018. Also, Bayer and Hank method has applied...

...Hiluf Techane Gidey; Naser Yenus Nuru Purpose Government spending has inconclusive effect on real exchange rate. From the very beginning neoclassical economists argued that a rise in government spending brings depreciation in real exchange rate while neo-Keynesians claimed that government spending...

... components (positive and negative shocks) of exchange rate volatility have negative and significant effect on trade in the region. Meanwhile, the effect of negative exchange rate volatility is higher on trade when compared with the positive exchange rate volatility. Furthermore, real exchange rate has...